For CEOs who’ve been otherwise resistant to treating employees more humanely, perhaps this headline will be the deciding factor:
Announcing Work-Life Balance Programs Raises Stock Prices
Professor Michelle Arthur of the University of New Mexico performed a statistical analysis on how the stock market reacted when Fortune 500 companies said they were adopting work-family initiatives. Arthur found these announcements in the Wall Street Journal (which we, in turn, cribbed from this BusinessWeek blog post) and they’re pretty typical:
“IBM began a childcare referral service for its employees”
“Procter & Gamble broadening the scope of their family-friendly policies”
What’s interesting is how these announcements were received. In the 80s, the reaction was slightly negative (reaction was at -0.35%). Now the reaction is slightly positive (0.48%). As the BusinessWeek post points out, “Now that may seem peanuts to you, but if you’re a $5 billion company, it means that even one such initiative could increase the value of your firm by 24 million. That’s a lot of peanuts. And a lot of share-holder value.”
Of course, this study says nothing about whether or not these programs were ever implemented, or if they were effective, or if they led to increased engagement or productivity. And the cynics out there will feast on the obvious—an uptick in stock price is a triumph less for people than for PR.
Still, the reason why this kind of PR works is telling. Because even though this study is operating at the most macro of macro levels, it shows once again how much pain people are in at work.
We want these kinds of initiatives to be true and we want them to work because we know that the traditional work environment creates an incredible amount of conflict in our lives. Having to be in a cube at 8:00 a.m. every single day regardless of the circumstances in our lives (or the circumstances in our jobs) just doesn’t work in a global, networked, knowledge-based economy.
So, yes, corporate America is throwing us a bone when they announce they’re “broadening the scope of their family-friendly policies” (whatever that means). Yes, there’s a good chance it’s all smoke and mirrors, that it’s a sham, a fake- out.
But because people are yearning for control over their lives, the reaction is real. That much we know.